Baseball cards are considered to be a normal good. This means that, as incomes rise, consumers are willing and able to purchase greater quantities (more) of baseball cards. How would an increase in incomes be modeled in a graph of the supply and demand curves for baseball cards? (1 point)

Question

Baseball cards are considered to be a normal good. This means that, as incomes rise, consumers are willing and able to purchase greater quantities (more) of baseball cards. How would an increase in incomes be modeled in a graph of the supply and demand curves for baseball cards? (1 point)

The demand curve would shift to the right
The equilibrium point would move upward along the demand curve.
The supply curve would shift to the right.
The supply curve would shift to the left.

Answer 1

The correct answer is: The demand curve would shift to the right.

When incomes increase, consumers have more purchasing power, enabling them to buy more baseball cards. This leads to an increase in demand, as consumers are willing and able to purchase greater quantities of baseball cards. In a graph, this would be represented by a rightward shift of the demand curve.